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Suppose an investor buys a share of Sony at a price of 38,720 at the start of the year. During the year, the investor receives

Suppose an investor buys a share of Sony at a price of 38,720 at the start of the year. During the year, the investor receives a dividend of 500. At the end of the year, the price of Sony is 49,560. During the year, the exchange rate goes from 150 = $1 to 175 = $1. What was the investor's dollar return on Sony?

a)29.29%

b)10.82%

c)3.24%

d)8.23%

15.28 Suppose you buy a share of Siemens at a price of 83. During the year, you receive a dividend of 2 and the rises by 8%. If the stock price at yearend is80, what was your total dollar return for the year?

a)10.60%

b)6.70%

c)9.83%

d)8.43%

15.29 Suppose an investor buys a share of British Petroleum at a price of 32 at the start of the year. During the year, the investor receives a dividend of 1.5. At the end of the year, the price of BP is 34. During the year, the exchange rate goes from 1 = $1.78 to 1 = $1.63. What was the investor's dollar return on BP?

a)2.35%

b)6.47%

c)1.59%

d)10.94%

15.31 Assume the standard deviation of the U.S. market portfolio is 18.2%, the standard deviation of the nonU.S. portion of the world portfolio is 17.1%, and the correlation between the U.S. and nonU.S. market portfolios is .47. Suppose you invest 40% of your money in the U.S. stock market and the other 60% in the nonU.S. portfolio. What is the standard deviation of your portfolio?

a)17.7%

b)9.4%

c)15.1%

d)18.3%

15.32 Assume the standard deviation of the U.S. market portfolio is 18.2%, the standard deviation of the nonU.S. portion of the world portfolio is 17.1%, and the correlation between the U.S. and nonU.S. market portfolios is .47. Suppose you invest 25% of your money in the U.S. stock market and the other 75% in the nonU.S. portfolio. What is the standard deviation of your portfolio?

a)16.7%

b)15.5%

c)17.1%

d)18.6%

Suppose an investor buys a UK bond with a coupon rate of 8% at its price of 990. The bond's face value is 1,000. If the British pound depreciates by 5%, at what end ofyear selling price of this bond will the dollar return on the bond just equal 10%?

a)1062

b)1100

c)1000

d)1300

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